We may be a nation of animal lovers, but many people do not have cover for vets' bills. Lynne Bateson studies the options 

10 tips for insuring your family's pets 

THERE are 8m cats and 6.5m dogs in Britain and 40% of the population owns a pet. Like us, pets get ill. But unlike us, they do not have a national health service to look after them. 

If your dog swallows a child's toy (quite common with Labradors), an operation could set you back £500. Five years' medication for chronic gastro-enteritis, another frequent complaint, could cost £1,000. Insurance could be the solution. But only one out of three pets is insured. 

Here are 10 things you need to know about pet insurance. 

1 What sort of things does pet insurance cover? 

Most insurers normally deal only with dogs and cats, although you can sometimes get quotes for other animals. Policies cover vets' fees and legal bills if your pet causes damage, plus a lump sum on the death of your animal. 

Several companies also pay out if your pet is lost.  Some firms provide extras. Direct Line, for example, offers counselling for bereaved pet owners. Pet Plan is to introduce travel insurance to coincide with the launch of pet passports in the spring. 

2 How much does it cost to insure a pet? 

Premiums depend on where you live, the breed of animal, its size and how much cover you choose. 

Location matters since vets' bills vary enormously around the country - and the smaller the animal the less anaesthetic is needed in operations. 

Insurance typically costs £7-£20 a month for a dog or £4-£11 for a cat. Premiums have risen by about 10% every year for the past decade. 

3 Does it cost more to insure a pedigree pet? 

Yes. Companies argue that higher premiums are necessary because pedigree animals are more prone to inherited physical and behavioural weaknesses. They also cost more to replace. Primary Direct does not, however, discriminate against pedigrees. 

4 Why has the cost of cover for animals gone up? 

Animals, like humans, are living longer. They therefore suffer the ills of old age, such as heart disease and cancer, which are costly to treat. 

According to Pet Plan, six out of 10 of its customers with a pet aged over 10 made a claim last year. Like us, animals can also benefit from expensive advances in medical science. Dogs have hip replacements and even swallow beta-blockers. If your cat was run over five years ago, it might have been patched up and put in a splint. Now, it will probably be given an x-ray and any fracture will be internally rebuilt. 

5 Can you take out cover for older cats and dogs? 

Most insurers will not take on a dog or cat if it is more than eight years old - and will renew policies only for those over 10 at their discretion. If you find a company that is willing to cover your older animal, the policy will normally exclude any diseases your pet has developed already. 

Pet Protect and Pet Plan offer old animals much-needed lifetime cover for higher premiums - typically a couple of pounds extra each month. Also, check whether your insurer will pay out on inherited conditions. Some will pay if there was no trace of these complaints before the cover was taken out. 

6 Is there a time limit on insurance claims? 

Insurers do not usually allow you to claim for a specific illness for more than 12 months. The condition will then be excluded when you renew the policy. Pet Plan is, however, an exception. 

7 Is there a discount for more than one animal? 

Direct Line is one of the insurers that offers discounts for more than one animal. It gives a 10% reduction on premiums. 

8 Can I claim for alternative forms of treatment? 

Most insurers pay for alternative therapy, including acupuncture, often used for arthritis and homeopathy. But they have to be recommended and administered by a vet. You may also be able to claim for behavioural lessons. Cosmetic surgery is not on the agenda. So if you want Fido's ears re-shaped - a common request - you will have to pay. 

Dentistry is often excluded, especially if your animal has not received regular check-ups. 

9 Can I take out insurance cover on my horse? 

Not all pet insurers cover horses and you may need to talk to a specialist firm, such as Equine & Livestock, or Julie Andrews Horse Insurance Services. The cheapest of Equine & Livestock's policies costs £3.10 a month and covers death, public liability and theft - but not vets' fees. 

If you are prepared to pay a monthly premium of £9.50, the insurance would meet fees of up to £5,250 for each claim. 

10 Is there any insurance for exotic animals? 

To insure creatures such as lizards, snakes, tortoises, pot-bellied pigs and parrots you should talk to an expert, such as Exotic Direct. 

Premiums will be higher because unusual animals need specialist vets, they cost more to replace and attract thieves - the trade in stolen exotic animals is big business. 

Sunday Times 19/9/99